OREANDA-NEWS. August 12, 2011. At least USD 1 billion of Chinese direct investments will be injected into a China-Belarus industrial park in Belarus, Deputy Prime Minister of Belarus Anatoly Tozik told reporters.

The bilateral cooperation was top on the agenda of a session of the Presidium of the Council of Ministers.

The Vice-Premier noted that the project will require significant foreign investments estimated at USD 1-1.5 billion. The bulk of funds will be spent on the infrastructure of the future China-Belarus industrial park. “Overall, we have plans to raise at least USD 1 billion of Chinese direct investments to build the facility,” Anatoly Tozik informed.

He added that the intergovernmental agreement on the joint development of the China-Belarus industrial park is to be signed in September. This will be one of the biggest projects involving Chinese investments.

Anatoly Tozik reminded that China had provided investments for the construction of the Lebyazhi residential compound in Minsk. The investments into the project are estimated at USD 200 million. This year the construction of a five-star hotel complex will be launched in Belarus with the help of USD 150-200 million of Chinese investments. Besides, a consortium of Chinese companies will construct a multi-purpose information-trading-business center Chinatown; USD 300-350 million of Chinese investments are to be raised for the project.

The Vice-Premier underlined that at present documents are being drafted to create most favorable environment for the successful implementation of the projects.

At present more than ten major Belarusian-Chinese projects are in progress, with the credit support close to USD 4.5 billion. These projects are implemented quite successfully, said Anatoly Tozik. For instance, Minsk-based cogeneration plant No. 2 went operational a while ago after remodeling. Cogeneration plant No. 5 is about to go online. New technological lines to make cement are being installed at cement mills. All these efforts are greased by Chinese capital. In addition, Chinese investments will be used to develop the Svetlogorsk pulp and paper factory. “The contract and the credit agreement have been signed. They are working now on the advance payment and insurance matters. After that the project can be launched,” said the official.

Certain Belarusian-Chinese projects are being implemented slowly, Anatoly Tozik told media.

The Vice Premier remarked that it was the Belarusian side that should be blamed for some cases. “Everything should be done in a more professional and timely manner,” Anatoly Tozik urged heads of ministries and government agencies. Slow implementation increases implementation costs and reduces the effectiveness of projects.

Anatoly Tozik believes that documents on some joint projects were signed in a hasty and unwise manner. As an example he mentioned projects supervised by the Transport Ministry and Minsk City Hall. Among them are plans to build motorways between Minsk and oblast capitals and plans to build multi-level junctions in Minsk. “These projects were not thoroughly worked out so we put them aside,” said the Vice Premier. He added that decisions were made at the session of the Council of Ministers Presidium that would help accelerate individual projects in the transport sphere, including the development of the national airport Minsk.

Belarus believes that an official visit of Chairman of the Standing Committee of the National People’s Congress of China Wu Bango to Minsk in September 2011 will help accelerate the existing projects and shape new ones. “We are interested in filling the visit as much as possible,” stressed Anatoly Tozik.

Vice Premier also said that Belarus plans to step up cooperation with China on the swap deal.

According to Anatoly Tozik, it is necessary for the two countries to expand cooperation on the document. So far its mechanisms are not used in full. “The mechanism is not working yet due to the lack of experience and due to cautiousness of the Chinese side in using yuan in foreign trade turnover and due to our sluggishness,” said the Vice Premier. Yet in the next few months measures will be taken in Belarus to enable the mechanism’s operation.

The official reminded that the swap deal between Belarus and China was a breakthrough in relations between the two countries. “Belarus was the only European country in the CIS space China has signed a USD 3 billion swap deal with,” he reminded.

Belarusian-Chinese cooperation has been developing rapidly in the last few years. In 2010 the pace of Belarus-China trade development largely exceeded that of 2009 and even exceeded figures of the pre-crisis year of 2008. In 2010 Belarus’ trade with China (including Hong Kong, Macao and Taiwan) went up 77.6% in comparison with 2009 to USD 2.51 billion, 11.4% up from 2008.

Belarus’ export of commodities and services to China (including Hong Kong, Macao and Taiwan) reached USD 642.8 million in 2010, 167% up from 2009. Without oil products, potassium and transport services rendered to deliver potassium Belarus’ export to China went up 51.5%. In 2010 Belarus’ import from China amounted to USD 1.87 billion, 59.4% up from 2009. The deficit of Belarus’ trade with China totaled USD 1.233 billion.

In January-May 2011 Belarus-China trade reached USD 1.18 billion, 35.7% up from January-May 2010. The deficit of Belarus’ trade with China amounted to USD 659 million, \\$402 million more than in January-May 2010.